Johnson Matthey’s 2025 Green Methanol Strategy: How Divestment Fuels a Tech Licensing Empire

Industry Adoption: Johnson Matthey’s Shift from Diversified Supplier to Focused Green Methanol Leader

Between 2021 and 2024, Johnson Matthey (JM) methodically laid the groundwork to become a central technology provider in the nascent green methanol space. The company established itself as a go-to licensor through strategic partnerships, providing its methanol synthesis technologies for pioneering projects like Perstorp’s “Project Air” in Sweden and ABEL Energy’s facility in Tasmania. During this period, JM’s strategy was one of broad engagement, forming alliances with engineering firms like KBR and technology specialists like Carbon Recycling International (CRI) to offer integrated solutions. This phase was characterized by the introduction of new technologies like SWITCH METHANOL™ and the selection of its processes for projects entering the engineering phase, such as with HIF Global. This demonstrated JM’s technical credibility but kept it within the bounds of a diversified specialty chemical company exploring a promising growth area.

The year 2025 marks a dramatic inflection point. JM’s commercial activity has transformed from broad engagement to a highly focused, aggressive strategy centered on green methanol. The pivotal event was the decisive £1.8 billion sale of its Catalyst Technologies business to Honeywell. This move fundamentally reshaped the company, providing both substantial capital and strategic clarity. Post-divestment, JM has operated as a leaner, more agile entity, doubling down on high-growth sustainable technologies. This is evidenced by a rapid succession of large-scale commercial wins for its proprietary eMERALD™ e-methanol and biomethanol technologies. The company is no longer just a technology option; it is the selected core technology provider for some of the world’s largest planned green methanol plants, including Reolum’s 140,000 tonnes/year project in Spain and SunGas Renewables’ massive 500,000 tonnes/year biomethanol facility in Louisiana. This shift from foundational partnerships to anchoring multi-billion-dollar projects signals that JM’s technology has been validated at scale, creating a new opportunity to dominate the licensing market for an industry projected to hit $4.64 billion by 2030.

Table: Johnson Matthey Strategic Investments and Divestments (2021 – Present)

Table: Johnson Matthey Key Green Methanol Partnerships (2021 – Present)

Geographic Expansion: Johnson Matthey’s Green Methanol Projects Go Global

Between 2021 and 2024, Johnson Matthey’s green methanol activities were geographically dispersed, reflecting an exploratory phase targeting regions with strong decarbonization ambitions. Key projects emerged in Europe (Perstorp in Sweden), Australia (ABEL Energy in Tasmania), and the Americas (HIF Global in Uruguay and the US). This global footprint allowed JM to establish its technology in diverse regulatory and logistical environments. These early-stage commitments in various corners of the world demonstrated the universal appeal of green methanol but represented individual project wins rather than a concentrated market penetration strategy. The risk was a fragmented effort without the depth needed to build regional ecosystems.

In 2025, JM’s geographic strategy has visibly sharpened and consolidated around two core, high-growth industrial regions: the US Gulf Coast and Western Europe. While still maintaining a global presence, the scale and significance of its new projects are concentrated here. In the US, JM secured two massive projects: the 500,000 tonnes/year SunGas biomethanol plant in Louisiana and the 120,000 tonnes/year ETFuels e-methanol plant in Texas. This establishes a dominant position in the heart of North America’s energy and chemical industry. Simultaneously in Europe, the selection of its eMERALD™ technology for Reolum’s 140,000 tonnes/year e-methanol facility in Spain signals a focus on key EU markets with supportive “Just Transition” policies. This geographic concentration indicates that these regions are moving past pilot stages and into large-scale commercial development, allowing JM to build a defensible market share in the world’s most active green fuel hubs.

Technology Maturity: Johnson Matthey’s Journey From R&D to Commercial Scale

From 2021 to 2024, Johnson Matthey was focused on developing and proving the viability of its diverse sustainable methanol portfolio. This period saw the launch of its award-winning SWITCH METHANOL™ technology (2023), designed to minimize CO₂ emissions, and the formalization of its waste-to-methanol offering with MyRechemical. The company’s core e-methanol technology, eMERALD™, gained initial validation through selections for projects in the engineering and planning stages, such as with HIF Global (2023-2024) and Perstorp (2023). The primary activity was technology development, marketing, and securing roles in pre-FID (Final Investment Decision) projects. This demonstrated technical competence and market interest but left the commercial scalability of these technologies still to be proven in operational, large-scale plants.

In 2025, the narrative has shifted decisively from development to commercial deployment and scaling. JM’s technologies are no longer just being selected; they are being integrated into projects moving towards construction and operation. The eMERALD™ process has become the centerpiece, chosen for major commercial-scale plants like Reolum’s La Robla (140,000 t/y) and ETFuels’ Rattlesnake Gap (120,000 t/y). This signifies the technology’s graduation from the drawing board to a bankable, commercial reality. Simultaneously, JM’s biomethanol process was validated at an even larger scale with the SunGas Renewables project (500,000 t/y). The technology’s maturity is further underscored by its integration into broader solutions, such as the methanol-to-jet alliance with Honeywell. This transition from technology launch to anchoring billion-dollar infrastructure projects confirms that JM’s offerings have reached commercial maturity and are now in a phase of market replication and scaling.

Table: SWOT Analysis of Johnson Matthey’s Green Methanol Strategy

2025 Forward-Looking Analysis: What Johnson Matthey’s Pivot Signals for the Year Ahead

The events of 2025 signal that Johnson Matthey is all-in on a focused, technology-licensing strategy for the green methanol economy. The year ahead will be less about new announcements and more about execution and delivery. The market should watch for three critical signals that will determine the success of this strategic pivot. First, the finalization of the £1.8 billion Catalyst Technologies sale to Honeywell is paramount. The successful closure, expected in early 2026, will formally inject the capital needed to fuel R&D and support its partners, validating the company’s financial transformation. Second, tangible progress on its flagship projects is crucial. Milestones like the start of the FEED study for ETFuels’ Texas plant and a Final Investment Decision (FID) for the $2 billion SunGas Renewables project in Louisiana will be the ultimate proof points of market traction. These events will move JM’s role from a selected partner to a revenue-generating licensor.

Finally, expect JM to further leverage its integrated partnership model, particularly the methanol-to-jet alliance with Honeywell. As the demand for Sustainable Aviation Fuel (SAF) intensifies, the first commercial project to adopt this combined JM-Honeywell solution will be a major catalyst, demonstrating a clear, bankable pathway from renewable inputs to high-value e-fuels. For energy executives and investors, tracking these execution milestones is more critical than monitoring new partnership announcements. The successful commissioning of plants like Reolum’s La Robla will serve as the definitive commercial validation, proving that JM’s focused bet on the green methanol economy is paying off. Understanding these complex, evolving value chains is essential for strategic planning, and leveraging advanced market intelligence platforms can provide the real-time insights needed to navigate this dynamic landscape.

Frequently Asked Questions

What was the most significant event driving Johnson Matthey’s strategic shift in 2025?
The pivotal event was the agreed-upon £1.8 billion sale of its Catalyst Technologies business to Honeywell. This divestment provided substantial capital and strategic clarity, allowing JM to pivot from a diversified company to a leaner entity focused on high-growth sustainable technologies like green methanol.

Is Johnson Matthey producing green methanol itself?
No, Johnson Matthey’s strategy is to be a technology licensor, not a producer. The company licenses its proprietary technologies, such as eMERALD™ for e-methanol and its biomethanol processes, to project developers like SunGas Renewables and Reolum, who then build and operate the production plants.

What are Johnson Matthey’s key green methanol technologies that are gaining commercial traction?
The company’s proprietary eMERALD™ e-methanol technology is the centerpiece, having been selected for large-scale plants by Reolum in Spain and ETFuels in Texas. Additionally, its biomethanol synthesis technology was chosen for the massive 500,000 tonnes/year SunGas Renewables project, validating its portfolio at a commercial scale.

How has Johnson Matthey’s geographic focus for green methanol projects changed in 2025?
Before 2025, JM’s projects were globally dispersed in an exploratory phase. In 2025, its strategy has visibly sharpened and consolidated around two core industrial regions: the US Gulf Coast (with major projects in Louisiana and Texas) and Western Europe (with a flagship project in Spain), indicating a focus on the world’s most active green fuel hubs.

What are the next critical milestones to watch for that would validate JM’s new strategy?
The analysis points to three key milestones: 1) The final closure of the £1.8 billion Catalyst Technologies sale to Honeywell. 2) Tangible project progress from its partners, specifically Final Investment Decisions (FIDs) for major projects like the SunGas Renewables facility. 3) The first commercial adoption of the integrated Methanol-to-Jet (MtJ) solution developed with Honeywell, which would open a major pathway to the Sustainable Aviation Fuel (SAF) market.